A 30-year maturity bond has a 6.5% coupon rate, paid annually. It sells today for $874.92. A 20-year maturity bond has a 6.0% coupon rate, also paid annually. It sells today for $891.9. A bond market analyst forecasts that in five years, 25-year maturity bonds will sell at yields to maturity of 7.5% and 15-year maturity bonds will sell at yields of 7.0%. Because the yield curve is upward sloping, the analyst believes that coupons will be invested in short-term securities at a rate of 4.1%.

a. Calculate the (annualized) expected rate of return of the 30-year bond over the 5-year period. (Round your answer to 2 decimal places.)

b. What is the (annualized) expected return of the 20-year bond? (Round your answer to 2 decimal places.